Percentage of invoice line items approved by replenishment/vendor managed inventory
This measure calculates the percentage of invoice line items approved by replenishment/vendor-managed inventory (VMI). An invoice line item is a single entry on an invoice. For example, an invoice for 10 red books at $1.00 each, and 20 blue books at $3.00 each, would be considered to have two invoice line items. VMI refers to any practice that involves cooperation between supply chain partners to control inventories in customers' distribution centers. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "approve payments" process, which involves processing payments of operating expenses and other supplier charges.
Benchmark Data
- Median
- 75th
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Indicator:
Compute this Measure
Units for this measure are percent.
Percentage of invoice line items that is approved by replenishment/vendor managed inventory
Key Terms
Supplemental Information
Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.